HAMMOND | A local business owner won’t see any jail time despite his guilty plea to federal tax evasion charges this week.
U.S. District Court Judge Phillip Simon sentenced David Gertz, of Hebron, to two years of probation and 50 hours of community service, according to Special Agent Kerry Hannigan, spokeswoman for the Internal Revenue Service Criminal Division.
Gertz pleaded guilty to the three-count indictment charging him with willfully and fraudulently making false statements on three tax returns. He faced up to three years in a federal prison and a maximum $250,000 on each count.
According to the federal indictment, Gertz underreported income from his business, Gertz Alert Security Systems of Merrillville, stating on his 2004 tax return gross sales of $55,364 and business income of $25,057. However, the true gross sales were $116,044 and income of $76,682 for the 2004 tax year.
On his tax return for 2005, Gertz reported gross sales of $57,482 and business income of $25,319 when in fact he knew his gross sales were $189,112 and business income was $81,180, authorities said. His 2006 tax return stated gross sales of $58,269 and business income of $20,983 when the true gross sales were $148,114 and business income was $81,650.
The IRS must pursue restitution in the case.